Wednesday 12 November 2014

FOCUS: Investment in Sudan

Sudan KPMG Country Profile

National Investment Encouragement Act 2013

Regarding the requirement for a local involvement 

Section 8 reads
Prohibition of Discrimination between Projects 
8- (1) For the purpose of this Act, no discrimination shall be made between the investors as being 
Sudanese, or non- Sudanese, or as being public, private sector, co-operative or joint sector. 
(2) No discrimination shall be made between similar projects in similar areas in respect of granting 
concessions and guarantees. 


Notes

1. The government eliminated the Ministry of Investment in December 2011 and replaced it with a High Council on Investment.

2.  Sudanese investment law states that “just compensation” must be offered in the case of nationalization or confiscation of all or part of any investment for “the public interest.” 
3.  Performance Requirements/Incentives
Investors must begin their projects within six months of receiving a license, submit reports every six months during the period in which the project receives special privileges, keep regular books and maintain records on the assets of the project exempted from customs duties, and exempted imported materials, and present, to the Minister, the Competent Minister and the State Minister, annually, during the period of validity of the privileges, a copy of the annual report of the project, approved by a certified auditor.
Sudanese investment law specifies certain sectors as strategic for the purpose of providing additional or special incentives: (1) infrastructure, including roads, ports, electricity, dams, communications, energy, transport, contracting business, education, health and tourist and information technology services and water projects; (2) natural resource extraction and exploitation; and (3) agriculture and industrial production.
Investments in strategic sectors are exempt from tax on profits for a period of ten years. The High Council on Investment may grant non-strategic investments an exemption of five years. The government may also extend benefits including free land and exemptions from other taxes and fees to strategic and non-strategic investments. Such projects may include, but are not limited to, investment in the least developed areas of the country; investments that assist in the development of export capabilities; investments that contribute to rural development; investments that increase employment; investments that are charitable in nature; and investments that develop scientific and technological research.
4.  Foreign Trade Zones/Free Ports
Sudan has established two free trade zones: Suakin on the Red Sea near Port Sudan and Aljaily near Khartoum. According to the Free Zones and Free Markets Law of 1994, industrial, commercial or service investments which are licensed in the free zones enjoy the following advantages:
-- Exemption of the projects from tax on profits for 15 years, renewable for an extra period dependant on the decision made by the concerned minister;
-- Salaries of expatriates working in projects within the free zones are exempted from personal income tax;
-- Products imported into the free zone or exported abroad are exempted from all customs fees and taxes except service fees and any other fee imposed by the board of the Sudan Free Zones Company;
-- Real estate inside the free zones area is exempted from all taxes and fees;
-- Invested capital and profits are transferable from Sudan to abroad through any bank licensed to operate in the free zone;
-- Money invested in the free zones may not be frozen or confiscated.
Source
http://www.state.gov/e/eb/rls/othr/ics/2012/191239.htm

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